General Motors shares climbed more than 6pc within minutes of the opening bell
ringing on Thursday, marking a remarkable return to the stock market for the
US car maker.

GM shares climbed as high as 9.1pc and were trading at $35.50 at 10am in New York. They closed at $34.19, up 3.6pc. After a final day of frenzied orders for GM shares, the Detroit-based company said on Wednesday that it had raised $20.1bn (£12.6bn) selling shares at $33 each, making it the largest US flotation. It has the option to sell up to $23.1bn, which would eclipse Agricultural Bank of China as the biggest flotation in history.

The almost $50bn bail-out in June 2009 sparked controversy but has allowed GM to cut costs, restructure its debt and change its management. With an improvement in the global economy, the carmaker has notched up earnings of $4bn so far this year and is on course for its first annual profit since 2004.

“That GM has come this far is certainly a commendable achievement,” said Howard Wheeldon, an analyst at BGC Partners.

The flotation also reduces the US government’s stake to 33pc from 61pc, though the total stake needs to be sold at an average of $43.67 a share for taxpayers to recoup their money. Chris Liddell, GM’s chief financial officer, said that “with a new business model, centered around designing, building and selling the world’s best vehicles, we’re ready to compete.”

The widely anticipated flotation has seen almost every bank on Wall Street take part, with Morgan Stanley, JP Morgan Chase, Bank of America Merrill Lynch and Citigroup leading the underwriting.

Although controversial, the bail-out of GM, Chrysler and auto financier GMAC saved the US from a bigger loss. The Centre for Automotive Research has calculated that increased welfare payments and lost tax receipts would have been more expensive in the long run than allowing the companies to fail.